Kolkata-based FMCG major Emami today said it plans to have at least three manufacturing units in Africa in the next three years and is closing in on an acquisition in Egypt as part of its strategy to expand in the continent.
"We plan to have three manufacturing bases in Africa in the next two-three years. We will either acquire companies or go the organic route for it. Right now we are in talks with several companies in the personal care space for acquisition," Emami Group Director Prashant Goenka told PTI.
He said Emami is looking at buying several personal care firms in the region and the company is almost certain of having its first manufacturing facility in Africa this year by acquiring an FMCG firm in Egypt.
"Talks are in advanced stages to acquire a firm in Egypt. The acquisition will provide us the first manufacturing facility in Africa," Goenka said.
At present, Emami is sourcing products from India as well as from its facilities in other countries to sell in African markets.
"Having a facility in Eygpt will be economical and help reduce our cost by 32-40 per cent," he said, but did not disclose details such as the size of the deal as well as the name of the firm that Emami is in talks with in Egypt.
In southern and western Africa, Emami may opt for either acquisition or setting up facilities on its own, he said without divulging further details.
The African market contributes about 33 per cent to the company's international business. In the next four years, Emami expects to increase the contribution from Africa to over 60 per cent of its overseas business.
"Africa is one of the fastest growing markets. Last year, it grew over 100 per cent. Our expectation is that the region can contribute around 60-70 per cent to our overall overseas business in the next four years," he said.
International business accounts around 20 per cent of the company's turnover. Emami had sales of around Rs 800 crore in the last fiscal.
At present, Emami sells personal care and over-the-counter products, including Emami fairness cream, Boroplus and Himani Fast relief balms, besides other localised skincare items in the African region.
Asked if the company is also looking at buying some of the international personal care brands like its rival firms Godrej, Wipro and Dabur, Goenka replied in the affirmative, saying the firm has kept it as an option for its growth.
"We are definitely interested in buying some of the brands of Africa in the skincare space if there is any good one. However, as of now our focus is on having our own base through acquistions or setting up our own," he said.
